Sebi to auction properties of Royal Twinkle, Citrus Check Inns on Jan 7
Capital markets regulator Sebi has lined up properties of Royal Twinkle Star Club and Citrus Check Inns for an auction on January 7 at a reserve price of Rs 16.55 crore.
The move is part of Sebi’s effort to recover funds worth thousands of crores of rupees raised by the companies in the garb of sham ‘‘timeshare’‘ holiday plans.
In a notice, the Securities and Exchange Board of India (Sebi) said it will auction five properties of the companies on January 7 at a reserve price of Rs 16.55 crore.
The auction will be conducted through online mode, it added.
The properties to go under the hammer include four office premises and a land parcel in Maharashtra.
In addition, the regulator would auction eight vehicles belonging to Royal Twinkle, its director and others for a reserve price totalling Rs 29 lakh.
The vehicles included Mercedes Benz E class, Honda City, Volkswagen Polo and Audi Q7.
In August, Sebi auctioned properties of Royal Twinkle and Citrus Check Inns at a reserve price of over Rs 68 crore. During November 2019 to February 2020, 67 properties of the companies were auctioned at a reserve price of Rs 457 crore.
The move came following a Supreme Court order in December 2019 that directed the sale-cum-monitoring committee headed by retired Justice J P Devdhar to proceed with the sale of 114 properties of the companies within six months.
In December 2018, Sebi had imposed a penalty of Rs 50 lakh on Citrus Check Inns and its directors for non-compliance with its order, wherein it had barred them from raising funds from the public.
Sebi had received several investor complaints against Citrus alleging that directors of Royal Twinkle were now running their collective investment scheme (CIS) through Citrus.
In August 2015, the regulator had imposed a four-year ban on Royal Twinkle and its four directors for illegally raising over Rs 2,656 crore in the garb of sham ‘‘timeshare’‘ holiday plans.
Besides, it had directed the company and its officials to refund the money along with promised returns to the investors in three months.